Blackstone’s $13.3 Billion AI Data Centre Investment in the UK

(Reuters) – U.S. private equity firm Blackstone (NYSE:BX) has confirmed a 10 billion pound ($13.3 billion) investment for an artificial intelligence data centre in northeast England, according to the British prime minister’s office.

Economic Impact

The construction of the AI data centre, set to begin next year, is expected to create 4,000 jobs, including 1,200 roles dedicated to the construction of the site. This announcement was made by Prime Minister Keir Starmer during his visit to New York.

Energy-intensive data centres have emerged as a key growth area for commercial landlords like Blackstone, amidst declining values of other assets, such as vacant post-pandemic offices.

In April, Blackstone proposed constructing the “hyperscale” data centre on a derelict site in Blyth, Northumberland, previously designated for a significant electric vehicle battery factory.

Previous Plans

Jon Gray, president and chief operating officer of Blackstone, confirmed the investment and its economic implications. Previous projects for the site were abandoned when UK startup Britishvolt collapsed last year, impacting ambitions for a home-grown battery industry.

Community Contributions

As part of the new agreement, Blackstone will contribute 110 million pounds to a local fund to enhance skills training and improve transportation infrastructure in Blyth, noted the prime minister’s office.

($1 = 0.7508 pounds)